EURGBP – fresh bulls penetrate into daily cloud; 0.9000+ advance likely n/t scenario
The cross advances through key barrier at 0.8938 (02 Nov post-BoE rally peak) to fully retrace 0.8938/0.8791 downleg and signal extension of recovery leg from 0.8791 trough.
Today’s bullish acceleration penetrated into thick daily cloud (spanned between 0.8927 and 0.9026) and cracked 100SMA (0.8945), as pound was hit by weaker than expected UK data while the Euro was inflated by upbeat Italian data.
Fresh bullish momentum is building on daily chart with daily MA’s turning into full bullish setup which could boost the pair for advance through psychological 0.9000 barrier and test of key short-term barriers at 0.9022/32 (peaks of 20/12 Oct / daily cloud top).
Close above broken cloud base is needed to confirm bullish signals while alternative scenario requires return below 30SMA (0.8890) to turn near-term focus lower.